Letter to BS: FM should say something clearly fixing responsibility on RBI

The RBI cannot argue that the control is divided because the job of audit is to be done by the RBI

This refers to the erudite article “Financial sector stability & our cook Lilu-tai by Tamal Bandyopadhyay (October 7) in which he has pertinently raised the question, “Was the banking regulator sleeping all these years?”. It is about the collapse-cum-crisis of the PMC bank. For several years, this bank was violating rules and its beneficiaries were enjoying in the most ostentatious manner. The Reserve Bank of India (RBI) had done an audit but could not detect anything. Millions of depositors are in the lurch. Yet the RBI issued a release on October 7 saying that, "the Indian banking system is safe